Aerocontinente Update

Not sure if anyone is following / aware of the developments at Aerocontinente, but it makes interesting reading.

“LIMA, Peru (Reuters) — Airlines in Peru said Sunday they would increase their domestic flights to aid thousands of passengers stranded after the government grounded the country’s biggest airline over an insurance dispute.
“Conscious of the emergency situation in the airline industry in Peru: Aerocondor, Atsa, LanPeru, LC Busre, Magenta, Star Up, Taca Peru and Tans have united … so that those who would use the suspended airline can reach their destinations,” the companies said in a statement.

July is Peru’s peak season for tourism and the government is hoping to attract thousands of tourists during the July 6-25 Copa America soccer championship, but transport was disrupted with the July 12 grounding of carrier Aero Continente, with a 65% share of the Peruvian market.

The Transport Ministry ordered the airline to stop flying because it only had a partial insurance policy that did not cover “all eventualities.”

The airline’s insurance ran out on July 10 and it was unable to renew its old insurance because its British insurer has links with the United States and the airline was cut off from all U.S. contact when Washington included its founder, Fernando Zevallos, on a drug “kingpin” list in June.

That list of alleged foreign drugs traffickers prevents Americans from flying on Aero Continente, embargoes its assets in the United States and prevents it from any dealings with U.S. companies, such as insurers or spare parts suppliers.

In separate statements, Lan Peru, a unit of Chilean flag carrier Lan Airlines, and Taca Peru, a unit of El Salvadorean airline Grupo TACA, said passengers with valid Aero Continente tickets bought before the July 12 suspension could fly with the two airlines with no extra charge, depending on availability of seats.

At the start of the month, the government declared a 90-day state of emergency in its air transport sector to keep planes flying during the Copa America and overcome a judicial ruling that grounds LanPeru, the South American tournament’s official airline.

A judge on June 30 ordered flights of LanPeru to be grounded saying it had violated civil aviation norms, responding to a suit brought by small local airline Aviandina.

LanPeru, which has a 24% share of the Peruvian market, has denied the accusations and continued to fly.”

Source: USA Today